The European Commission has approved a Romanian state aid measure worth €790 million (approximately RON 3.9 billion) to address the exceptional costs associated with the closure of four uncompetitive coal mines in the Jiu Valley—Lonea, Lupeni, Livezeni, and Vulcan. This decision aligns with the European Union’s state aid rules and supports Romania’s efforts to phase out coal production by 2032, in accordance with the National Recovery and Resilience Planand the Territorial Plan for a Just Transition.
The beneficiary of this measure is Societatea Complexul Energetic Valea Jiului S.A., the operator of the four mines and the Paroșeni power plant. The allocated funds will cover social costs for workers affected by the mine closures, as well as safety and environmental rehabilitation measures. This includes securing mine shafts, repairing environmental damage, and reclaiming land for future use.
The aid will be allocated for eligible costs incurred between October 1, 2023, and December 31, 2032. To ensure transparency and compliance, an independent consultant will be appointed to monitor coal extraction, ensuring it is limited to public safety needs, such as preventing spontaneous combustion. Annual reports will be provided to maintain oversight.
“This measure will help Romania carry out the necessary safety and rehabilitation work to facilitate mine closures while mitigating the social impact of the transition. It ensures that no one is left behind in the green transition,” said European Commission Vice-President Margrethe Vestager.
The European Commission evaluated the measure under Article 4 of Council Decision 2010/787/EU, determining that the aid strictly covers the exceptional costs arising from the mine closures, with no link to current production. Based on these findings, the Commission deemed the measure compatible with EU internal market rules.
